1. Stanley Medical Hospital is a non-profit and a non-chartered hospital planning to acquire several hospitals in the area. The hospital is researching financial options since they want to expand into nearby communities. Which of the following will not be available to Stanley Medical Hospital?

   a. Build America Bond

   b. Fixed-rate loan

   c. Fixed-rate bond

   
   

   d. Tax-exempt bond

2. Sundale Hospital is looking to raise tax-exempt municipal funds in the bond market. As an issuer of the bond, which of the following is not a part of the bond process that Laser Care Hospital will go through?

   a. Sundale Hospital will make the required payments.

   b. Sundale Hospital will contact a financial advisor.

   c. The financial advisor will work with Sundale Hospital to structure the bond and prepare the data.

   d. A bond underwriter will bring the bonds to market.

3. Dr. Klinger has several elderly patients that cannot come to his dental office. Dr. Klinger is researching various local banks for the best certificate of deposit rate to fund a dental van to use to drive to patients who need dental care. One bank is willing to offer him a 10-year certificate at a 6% interest rate compounded annually. He has $55,000 to invest. How much will Dr. Klinger have available at the time of maturity of the investment.

   Period	1%	2%	4%	6%
   5	1.051	1.104	1.217	1.338
   6	1.062	1.126	1.265	1.419
   7	1.072	1.149	1.316	1.504
   8	1.083	1.172	1.369	1.594
   9	1.940	1.195	1.423	1.689
   10	1.105	1.219	1.480	1.791

   a. $60,720

   b. $81,400

   c. $92,895

   d. $98,505

4. Which of the following is not true when a bond is being issued?

   a. Bond rating agencies are paid a fee to rate them.

   b. Bonds may change hands multiple times during a bond life.

   c. D is the highest bond rating that is given.

   
   

   d. The higher the credit rating assigned to a bond issue, the lower the market interest rate.

5. Cellendale is a for-profit hospital holding company. Cellendale is planning to issue bonds to finance a new hospital acquisition. When planning to issue bonds for financing, which of the following is not a valid reason to use bonds?

   a. There will be an exemption from federal income taxes.

   b. Interest will be reported to the Internal Revenue Service.

   c. Conduit bonds may be used.

   d. Taxable bonds can be used.